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Baker Tilly International has responded to Consultation on the IAASB’s Exposure Drafts for Quality Management at the Firm and Engagement level, including Engagement Quality Reviews
Baker Tilly International responds to IESBA consultation
As a network, we believe it is imperative that the IESBA and IAASB liaise closely to ensure that there is appropriate guidance available to support the objectivity of Engagement Quality Reviewers (EQR), whilst ensuring that overlap and inconsistency between the Code and ISQM2 are avoided.
In responding to the consultation, we:
- Stressed the importance of consistency between the requirements relating to EQR in the International Quality Standards (proposed ISQM2) and the IESBA Code of Ethics, highlighting inconsistencies in the current exposure draft of ISQM2 and the proposed changes to the Code of Ethics
- Disagreed with the IESBA proposals to include guidance on objectivity of the EQR in the Code of Ethics. We proposed that all requirements and guidance related to the EQR (including objectivity) be contained in a single location, preferably the proposed ISQM2 rather than the Code of Ethics
- Supported, in general, the proposed guidance relating to the objectivity of the EQR with some suggested amendments to enhance and clarify the proposals
- Agreed with the IESBA suggestion that the IAASB should determine any cooling-off period to be applied to a former engagement partner becoming EQR on an engagement
Our full response is available on the IESBA website.